Mediation Case Studies
Landlord & Tenant Dispute
The Problem – A landlord and tenant dispute between a printing company (the claimant) and the defendant (landlord) resulted in court action. The claim was for failure to detect / repair leaking pipes in the premises above the claimants which were rented out to another business causing his premises (where he conducted his business) to be flooded, it was alleged that the landlord eventually repaired the damages which were deemed by the claimant to be unsatisfactory, and requiring rectification the defendants refused, and denied any liability for disruption and economic loss, the claimant brought a claim for £67,000.
The Solution – Both parties had evidence which contradicted the arguments of the other, but ultimately made some sort of sense from where they were coming from, thus making this matter very difficult to mediate.
Clearly the claimant had experienced disruption and loss, clearly the defendant had made repairs, which according to the claimant were still unsatisfactory, to an extent the defendant agreed, but blamed the claimant, as he had refused the landlords agents from entering his unit, thus denying access for them to make all the necessary repairs.
Each party’s individual issue (head of claim) was addressed issues which could be struck out were, issues of common ground and agreement were found as well as issues which neither would agree on.
Both parties agreed that any remedial work should be undertaken by the defendant, the issue of disruption and economic loss was looked at thoroughly. In a private session with the claimant and his solicitor it was established that the disruption was nowhere near as much as he had originally pleaded, there was an element of loss of business though; he was just so fed up of the landlord and his inaction relating to this matter and previous issues, not subject to this litigation.
By reality testing the claimant it was established that he realistically had a claim for about £27,000, costs were an issue to him which were about £7,500. It was difficult to get the defendant to move at all, however he saw that a commercial decision had to be made, equally he was involved in other projects which involved the claimant and property which could easily turn sour, should this matter not be resolved. Equally his insurance company had paid him out for the damage so he was not really out of pocket, the parties settled for £25,000.
- The mediation took 1 day compared to the 9 months this landlord and tenant dispute had already gone on.
- The mediation cost each party £650.00 each compared to the thousands they had already spent on legal fees and the thousands they would have had to spend had they continued with Court action.